Municipalities react to provincial budget

“Overall as an Albertan, a citizen of Alberta, I’m actually surprised they didn’t cut more,” he said. “You elect a UCP government with the idea of austerity and measures. So I expected deeper cuts frankly.”

Some of the biggest cuts to municipals were the Municipal Sustainability Initiative (MSI) program, which sees the province help fund infrastructure projects.

The government has said they will continue to fund commitments that the NDP government made to municipalities for the 2019-2020 year.

After that though, over two years the UCP government will reduce funding for the program by $236 million.

“What I like about MSI is that it is fair for the most part. I don’t like having to go and beg and grovel for grants because if you’re Edmonton then your talking to the ministers every day,” Clugston said. “We use that a lot in Medicine Hat. We use that a lot for a lot of things you don’t see. Like sewers, stuff underground, and roads that maybe aren’t that exciting.”

Clugston says that he believes the city can absorb those costs though.

“We use a lot of that for say the new seniors’ centre, or the fire halls. We’re not going to be building any of those major above ground capital projects. We’ve signaled to the community that we are in austerity here as well. And we pretty much want for nothing here in Medicine Hat,” he continued. “I know people say may that’s not right. But really if I asked citizens you know what do we need, and I’m not saying want, what do we absolutely need. And I don’t know that we actually need anything that other municipalities have that we don’t have. So I think we can absorb the MSI cuts.”

Cypress County also used the MSI for infrastructure projects and is disappointed in the cuts to them.

“We’re going to feel that. How we’re going to react though, it’s too hard to tell right now,” said deputy Reeve Richard Oster.

Another cut that both the city and county will feel is the reduction of grants the province gives in lieu of property taxes for provincially owned land.

“If the province isn’t paying their property taxes just means that that share of revenue has to be spread among people that actually are paying. And it’s not really fair to the municipality because we’re still providing police service, fire service,” said Clugston. “You know they’re getting roads, water, and sewer. All of those things. And yet they’re not paying their fair share. That is a little frustrating to us.”

Oster agreed, saying the reduction of 50 per cent will hurt.

“The loss of that taxation, you get used to having it,” he said. “And then all the sudden now you gotta adjust to it. So I don’t have the dollar amount that just how much it’s going to affect us. But I’m sure there’s so money there that we’re going to miss.”

Despite that, Clugston is hopeful that the citizens of Medicine Hat won’t feel the provincial cuts here.

“Some of the other mayors of municipalities are saying is well if the province cuts, then it just means they have to raise property taxes. We are really going to try and hold the line here in Medicine Hat. Some of the growth we’ve had, hopefully, we can offset. Of course, we are trying to replace our dividend. But I’m a bit of an optimist. Things will work out.”

As for Cypress County, they say they have asked for an audience with the Minister of Municipal Affairs and local MLAs when they are in Edmonton November 12th – 15th for the Rural Municipalities of Alberta meeting.

Oster says that there they will be able to ask further questions on the budget and talk sustainable funding for the future.

by Hayley Ferguson

Municipalities react to provincial budget

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